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The pressure on the US dollar has intensified, and gold and silver have soared across the board. Is a bigger storm coming?
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Hello everyone, today XM Forex will bring you "[XM Group]: The pressure on the US dollar has intensified, gold and silver have surged across the board. Is a bigger storm www.xmtraders.coming?". Hope this helps you! The original content is as follows:
On January 26, spot gold continued to rise in the Asian market on Monday, hitting a record high of US$5,093.13 per ounce, benefiting from geopolitical turmoil and expectations of U.S. interest rate cuts, which jointly promoted Motivated investors to pour into safe-haven assets; U.S. crude oil is trading around $61 per barrel. Oil prices are supported by the geopolitical situation. The impact of the United States imposing new sanctions on Iran and sending military forces to the Middle East has intensified market concerns about possible disruptions in crude oil supply in the region.
The foreign exchange market fluctuated significantly last Friday. The Japanese yen surged twice during the session, triggering speculation that the Japanese authorities may conduct exchange rate intervention. The U.S. dollar index continued its decline, recording its largest weekly decline in months.
The yen rose to 155.855 yen against the US dollar in late trading in New York, having hit a nearly 18-month low of 159.2 during the session. Market analysts believe that the sudden rebound of the yen after the Bank of Japan kept interest rates unchanged may be related to the authorities' exchange rate "inquiry", which is a www.xmtraders.common verbal intervention method designed to send a warning signal to the market. Traders remain wary of the possibility of Tokyo stepping in to curb the yen's decline. Analysts pointed out that since the new Prime Minister Sanae Takaichi took office, market concerns about Japan's financial situation have continued to put pressure on the yen.
Meanwhile, the U.S. dollar suffered a broad sell-off. The U.S. dollar index closed at 97.571, down more than 1% last week, the largest weekly decline since June last year. The geopolitical situation, especially tensions surrounding Greenland, is a major factor weighing on the dollar and market risk sentiment. Although U.S. President Trump said last week that he had gained "full access" to Greenland through the agreement and ruled out the possibility of taking it by force, related uncertaintiesU.S. assets have been hit hard at the start of the week.
Major non-US currencies strengthened. The euro rose 0.5% against the dollar to $1.181, while sterling was at $1.362, with the unexpected increase in UK retail sales having limited impact. The overall market sentiment is becoming cautious, and investors are adjusting their positions amid multiple uncertainties.
Asian Markets
Bloomberg reported on Sunday that Japanese Prime Minister Takaichi Sanae said that the government will take necessary measures to deal with speculative and abnormal market operations. However, she did not specify which market her remarks were referring to.
The www.xmtraders.comments followed a sharp reversal in the yen on Friday night after traders reported that the New York Fed had contacted financial institutions to inquire about the yen's exchange rate.
European Market
British business activity accelerated sharply in January, with the PMI survey showing the strongest momentum in nearly two years. The manufacturing PMI rose from 50.6 to 51.6, the highest level in 17 months, and the service PMI jumped from 51.4 to 54.3, causing the www.xmtraders.comprehensive PMI to rise from 51.4 to 53.9, the highest level in 21 months.
UK businesses are “accelerating” despite geopolitical headwinds, according to Chris Williamson of S&P Global Market Intelligence. The preliminary PMI data was consistent with quarterly GDP growth of nearly 0.4%, with the services sector - particularly financial services and technology - leading the growth. Manufacturing also showed a gradual recovery, benefiting from a rise in merchandise exports for the first time in four years.
However, the good economic activity situation has been affected by continued unemployment, and www.xmtraders.companies have laid off employees in response to high costs. High staff costs were once again widely cited as a driver of rising sales prices, pointing to rising inflationary pressures above the Bank of England's target.
At the beginning of 2026, business activities in the euro area lacked momentum, and January PMI data showed that the recovery was fragile and uneven. The manufacturing PMI rebounded slightly from 48.8 to 49.4, but is still in contraction. The services PMI fell to 51.9 from 52.4, and the www.xmtraders.composite PMI remained at 51.5, a level consistent with only moderate growth.
The recovery "still looks quite weak," according to Cyrus de la Rubbia of www.xmtraders.commerzbank Hamburg. The manufacturing industry continues to show weakness and growth in the service industry has slowed.
For the ECB, these details are "not at all reassuring." Inflation in the services sector has risen sharply in terms of sales prices, while input cost inflation remains high. This dynamic is likely to reinforce the Governing Council's preference to keep interest rates steady, with some hawkish members likely arguing that the next step should be to raise rates rather than lower them.
Differences at the country level still exist. Germany's services sector expanded at a relatively solid pace in January, while France's services sector entered a contraction. In manufacturing, France is slightly better than Germany, although output growth remains weak in both countries.
U.S. market
U.S. business activity remained in expansionary territory in January, but momentum beganCool down. The manufacturing PMI rose slightly from 51.8 to 51.9, and the services PMI remained unchanged at 52.5, causing the www.xmtraders.composite PMI to rise slightly from 52.7 to 52.8.
According to Chris Williamson of S&P Global Market Intelligence, the PMI annualized GDP growth rate in December and January was about 1.5%. However, he warned that new business growth in manufacturing and services remained "worryingly subdued", raising the risk that first-quarter growth could fall below last autumn's stronger pace.
Labor market signals also appear weak. Job growth is nearing a standstill and www.xmtraders.companies are hesitant to add workers amid uncertainty, weak demand and high costs. Meanwhile, rising input costs - often blamed on tariffs - continue to drive up sales prices, keeping inflation and affordability issues firmly on the radar of businesses.
Canadian retail sales rebounded strongly in November, increasing 1.3% month-on-month to 70.4 billion Canadian dollars, slightly higher than the 1.2% expected. Growth was broad-based, with sales rising in eight of nine sub-sectors, driven by increased spending by food and drink retailers, showing consumer demand remained strong at the end of the year.
The underlying motivation is stronger. Core retail sales, excluding gasoline and autos, rose 1.6% month-on-month, indicating strength in household consumption beyond volatile categories and reflecting solid discretionary demand.
However, the outlook is less optimistic. Statistics Canada's preliminary estimate shows that retail sales may have declined by 0.5% month-on-month in December, suggesting that November's growth may not be sustained.
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